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Donald Trump has vowed to halt all future US assistance to South Africa over its land expropriation policies, triggering a fall in the rand.
The US president claimed recent measures enabled the government to confiscate land unfairly and accused South African authorities of treating “certain classes of people VERY BADLY”.
He added: “I will be cutting off all future funding to South Africa until a full investigation of this situation has been completed!”
Trump’s comments, made on Truth Social, sparked a 1.9 per cent fall in the South African currency, which weakened to R19 per dollar.
He later told reporters that South Africa’s leadership was engaged in “some terrible things, horrible things” and suggested without providing evidence or details that the situation was worse than land confiscation alone.
President Cyril Ramaphosa signed an expropriation bill into law this month. “Local, provincial and national authorities will use this legislation to expropriate land in the public interest for varied reasons that seek, among others, to promote inclusivity and access to natural resources,” according to a statement on the South African government website.
The US set aside nearly $440mn in assistance to South Africa in 2023, the last year for which data was available. The Trump administration has paused all foreign assistance for 90 days and has cast the future of its main international aid agency in doubt as its website has gone dark and dozens of employees have been placed on leave.
Ramaphosa last month told reporters in Davos that he was “not worried” about relations and that he and Trump had spoken after the US president was elected. South Africa holds the presidency of the G20 this year.
Close Trump ally and head of the Department of Government Efficiency Elon Musk is originally from South Africa.
Musk’s team has exerted broader control over US departments and agencies in recent days, including gaining control of the Treasury’s payment system and sending representatives to USAID to access information there, including classified information. Two senior security officials were placed on leave after denying access.
In his first term, Trump said his government would investigate claims of widespread killings of white farmers. The South African government has dismissed these allegations as unsubstantiated.
Trump has previously targeted the Brics nations, of which South Africa is a member, threatening them with 100 per cent tariffs should they move away from the dollar as reserve currency.
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